Entrepreneurship Behaviour Among the Orang Asli in Pahang and Perak
Abstract
Malaysia still struggles with poverty despite its efforts and intentions to become a developing nation. The majority of the Orang Asli population, still classified as B40, is the largest contributor to the country's poverty rate. The government has devised and implemented several projects and plans to enhance the Orang Asli's socioeconomic position. The Malaysian government wants to encourage Orang Asli entrepreneurship. Orang Asli entrepreneurship is minimal at this time which contributes to the minority's poverty including hunger, malnutrition, restricted access to education and other critical services, social prejudice and marginalisation, and a lack of involvement in decision-making, especially for local development. This study compares Orang Asli entrepreneurial behaviour to the TPB model's components (attitude, subjective norms, perceived behavioural control, and actual behavioural control). This pilot study included 40 Orang Asli entrepreneurs from Pahang and Perak. This study quantified variable relationships using face-to-face surveys. SEM tested the hypothesis. The results show that subjective norms favour Orang Asli entrepreneurship. Numerous research has been done on Orang Asli entrepreneurs, but few have used TPB to predict their entrepreneurial activities. This study examines each TPB component's ability to inspire entrepreneurial behaviour in Orang Asli. The results are beneficial for economic development, especially in boosting Orang Asli entrepreneurship in Pahang and Perak for sustainability and competitive edge and improving this minority group's socioeconomic position. They also indirectly help achieve the SDG target of ending extreme poverty by 2030. This study's findings will help academics, politicians, and aspiring entrepreneurs enhance Malaysia's entrepreneur population.
Keywords: Economic growth, entrepreneurship activities, entrepreneurial behavior, entrepreneurial intention, Orang Asli, poverty
Introduction
Poverty is a global concern, especially for emerging countries like Malaysia. Among the significant effects of poverty is including the existence of a group of people who do not have sufficient income, lack of social power, lack of education and also lack of adequate food and nutrition that associated with the host of health risks. Due to its detrimental effects on human beings, the existence of extreme poverty in several developing countries is an imperative issue that requires urgent attention. In order to help the poor, improve their living standards, the Malaysian government has introduced The New Economic Policy (NEP) and the Five-Year Malaysia Plans (Dahalan et al., 2013). These initiatives by the Malaysian government’s has shown positive results where Malaysia's rate of poverty reduction is more than twice that of East Asia and five times that of the globe overall (Ravallion, 2020). Ravallion (2020) claims that Malaysia has maintained long-term economic development without increasing inequality. For decades, economists have debated on inequality, and most economists believe that inequality contributes to the downside of economic growth. Persistent inequality raises the possibility of the emergence of an underclass with poor prospects for full economic participation as consumers or earners due to their lack of education and skills. It may result in political instability, which puts growth and investment at risk. Thus, it is importance to narrow the gap in inequality due to inequality jeopardizes long-term social and economic development, impedes poverty reduction, and undermines people's sense of fulfilment and self-worth. Neumann (2021) discovered that entrepreneurial activities have positive impact on human development. Hence, the Malaysian government recognizes the value of entrepreneurship and has been providing the necessary support to help entrepreneurs grow including the marginalized communities which is the Orang Asli specifically in improving their standard of living.
The government has pushed the less fortunate sections of society to engage in entrepreneurship activities as a means of assisting the impoverished to raise their level of living (Zamberi Ahmad & Xavier, 2012). Researchers have been concentrating on entrepreneurship over the past ten years since prior research has demonstrated a clear connection between entrepreneurship and economic growth (Audretsch et al., 2022).
Despite the fact that policy makers are extremely interested in entrepreneurship due to its significance to the nation's economic development, the government has implemented several interventions through various programs and policies (Kantis et al., 2020) and Malaysia is no exception. As the twenty-first century begins, Malaysia, a growing nation, is showing a strong interest in entrepreneurship (Othman, Amiruddin, & Hussein, 2011; Othman, Amiruddin, & Mansor, 2011). However, according to Department of Statistics Malaysia (2020) poor households contributed to increase in absolute poverty in Malaysia. Since entrepreneurship has been identified as a tool for generating economic advantage while raising living standards, it is one of the strategies that can be used to end poverty (Dahalan et al., 2013).
Because the majority of Orang Asli households fall below the B40 income bracket and make less than RM2500, they are the main cause of the country's 33.6 percent poverty rate in 2019 (Rosli, 2021). One of the reasons why the Orang Asli still live in poverty is because the level of involvement in the field of entrepreneurship is still low and limited to the Orang Asli families who have indeed been involved in entrepreneurial activity for generations (Rosdi et al., 2018). Hence, this study is to recommend practical methods for fostering the Orang Asli people's desire to act entrepreneurially. This will be accomplished by using the proposed theoretical model and nurture variables. Finally, by providing measures to help the Orang Asli, specifically in Pahang and Perak to become successful entrepreneurs, the results are anticipated to add value for the government, business owners, and policy makers.
Research questions
Generally, the purpose of this study is to provide answers about the factors that influence Orang Asli entrepreneurial behavior in Pahang and Perak. This study specifically aims to respond to the following questions:
RQ1: Does attitude affect entrepreneurial behavior among the Orang Asli?
RQ2: Does subjective norms affect entrepreneurial behavior among the Orang Asli?
RQ3: Does perceived behavioral control affect entrepreneurial behavior among the Orang Asli?
RQ4: Does actual behavioral control affect entrepreneurial behavior among the Orang Asli?
Research objectives
This study intends to accomplish the following objectives in relation to the Orang Asli in Pahang and Perak:
RO1: To investigate the effect of attitude on entrepreneurial behavior among the Orang Asli.
RO2: To investigate the effect of subjective norms on entrepreneurial behavior among the Orang Asli.
RO3: To investigate the effect of perceived behavior control on entrepreneurial behavior among the Orang Asli.
RO4: To investigate the effect of actual behavioral control on entrepreneurial behavior among the Orang Asli.
Hypotheses
Based on the research objectives and research questions, the researchers have proposed the following hypotheses to be tested:
H1: Attitude positively effects on entrepreneurial behavior.
H2: Subjective norms positively effects on entrepreneurial behavior.
H3: Perceived behavioral control positively effects on entrepreneurial behavior.
H4: Actual behavioral control positively effects on entrepreneurial behavior.
Literature Review
Overview of the Orang Asli in Malaysia
The Orang Asli community is a Malaysian minority group that is classified as the country's indigenous population, consisting of many ethnic groupings (Roddin et al., 2017). Officially, the Orang Asli are grouped into three major groups: Negrito, Senoi, and Proto-Malays (Rosdi et al., 2018). In Malaysia, the 18 sub-ethnic groups that make up the Orang Asli population are grouped into three primary ethnic groups and speak several languages (Latiff, 2010). Negrito is one of these, and it refers to the Kensiu, Kintaq, Lanoh, Jahai, Mendriq, and Bateq ethnic groups that live in the region around the Titiwangsa Range, which is primarily in the peninsula's north (Othman, Amiruddin, & Hussein, 2011; Othman, Amiruddin, & Mansor, 2011). The six tribes that make up the Senoi people—Che Wong, Mah Meri, Jah Hut, Semoq Beri, Semai, and Temiar—live on the Titiwangsa slopes in the interior states of Perak, Kelantan, and Pahang. The Semelai, Jakun, Orang Kanaq, Orang Kuala, and Orang Seletar tribes are among the five (5) tribes that make up the Orang Asli Proto-Malay group. This tribe once resided in coastal, estuarine, or valley regions. They now live in their own village (JAKOA, 2021). Due to the Orang Asli and Orang Asal community's diversity of ethnic groups and geographic regions, there are many distinctive traits in terms of way of life, dialect, culture, and customs (Latiff, 2010). Natural resources are crucial to the Orang Asli populations in Peninsular Malaysia because they historically relied solely on forest products (Rosdi et al., 2018).
Entrepreneurial activities among the Orang Asli in Malaysia
Despite various program and initiatives exposed by the government to encourage the Orang Asli to involve in entrepreneurship where this activity could help improve their socio-economy, the Orang Asli participation in entrepreneurship is still viewed as being minimal. Compared with the year of 2011 until 2015, the total entrepreneurs among the Orang Asli is 534 while in 2016 until 2020, the number is declined with only 327 entrepreneurs (JAKOA, 2021).
People in this region cannot ignore the fact that the Orang Asli were the first inhabitants of Malaysia for centuries. This is evident in Dunn's writings, which explain the economic activities of the Orang Asli in Malaya, particularly the production of forest products in this country, which was exported abroad in that century (Abdul Jamak et al., 2000; Jamak et al., 2000)
Study by Wang Gungwu in 1958 has also demonstrated that Orang Asli were the first inhabitants of this country based on forest materials exported to Southern China from Tan-Tan in the eastern part of Malaya between 420 and 508 AD. The Orang Asli people collected the materials, which include ivory, incense, gold, silver, wood agarwood, tortoise shell, snail shell, and amber stones. Based on this data, the population of the Orang Asli in Malay Peninsula appears around the 5th century AD (Latiff, 2010).
Historically, the Orang Asli were hunters, fishermen and farmers (Abdul Jamak et al., 2011). To improve their standard of living, the Orang Asli gradually abandoned their primitive economic activities and began to participate in the economy, much like the local community despite the fact that the majority of these tribes still rely on the forest for their livelihood, they are starting to recognize the value of the outside world and the requirements of the developing new economy (Othman, Amiruddin, & Hussein, 2011; Othman, Amiruddin, & Mansor, 2011).
In order to improve the lives of indigenous people, it starts with the Relocation Plan (RPS). The RPS began by moving those from the remote areas to the suburb’s areas. Initially, this program aims to improve social and economic development in the Orang Asli settlement. The RPS program was initiated starting on the Fourth Malaysia Plan that was implemented in 1980 until 1985. The resettlement of the Orang Asli community through this program has had a positive impact particularly with regard to the economy, health and education among this minority group of people (Lee et al., 2018). The main objective of this program under the Fourth Malaysia Plan is formulated by the National Operations Council (NOC) in the aftermath of 13 May Incident in Malaysia where it aims to make sure the socioeconomic goals of eliminating poverty regardless of race as well as to reforming society to get rid of the association of race with economic roles are accomplished (Lee et al., 2018).
However, in line with the results that show a good change in the development of the living standards of the Orang Asli, this socioeconomic development destroys the forest resources that were previously a source of livelihood for the Orang Asli (Lee et al., 2018). Various transformation programs have been implemented by the government in stages. Now the development seen more comprehensively even the society of the Orang Asli were also affected by the development (Wee et al., 2013). Through the various transformation programs as well as the environmental changes, it causes cultural shock and difficulties for the Orang Asli community in adapting to the new environment thus led to low level of the achievements. The achievements, including the level of education, health, income and the issue in their participation organized and planned by the government are not very encouraging (Norhayati & Ramle, 2021).
Despite various initiatives and programs planned and implemented by the government, the statistics of achievement is still considered low. The challenges faced by the government is to increase readiness and resilience the identity of the Orang Asli in receiving development (Wee et al., 2013). One of the reason is due to their attitude including easy to give up attitude, lack of academic skills, truancy, lack of self-confidence, inability to make decisions independently, over-dependence on others, laziness, prone to fatigue, sensitivity, shyness, hyperactivity, values, customs, beliefs, and taboos (Norhayati & Ramle, 2021).
Theory of planned behavior (TPB)
Despite the fact that entrepreneurial behavior is essential to the entrepreneurial journey, many other theories of entrepreneurship have been created in recent decades (Neneh, 2019). A psychological theory called the Theory of Planned Behavior, created and first proposed by Icek Ajzen in 1985, ties beliefs to behavior by focusing on the domain constructs of attitude, subjective standards and perceived behavioral control as they relate to a person's purpose (Lu et al., 2022). The basic or domain model of the TPB is shown schematically in Figure 1. Since The TPB has become one of the most common theoretical models for predicting an individual's intention to engage in a particular behaviour (Neneh, 2019), this study used the TPB as underpinning theory to support the study.
For several decades, TPB has been well recognized and inspired among researchers, as well as familiar to many students, practitioners, and policymakers in predicting individual behaviour (Zaremohzzabieh et al., 2019). Schematically, the conceptual framework of this study is represented in Figure 1.
Methodology
Research design
This study emphasized deductive reasoning in response to the research question and the nature of reality. This is because deductive approaches typically emphasize causality in order to make and test predictions of results (Creswell & Creswell, 2018). By using a quantitative approach, the survey is used to examine the relationship between the independent variables (IVs) and dependent variables (DVs). To investigate the factors that influence entrepreneurial behavior among the Orang Asli in Pahang and Perak, the researchers used the quantitative methods. Data was gathered using a cross-sectional design by the researchers. According to Creswell and Creswell (2018) cross-sectional data is collected at a single point in time. The researchers used sets of questionnaires through face-to-face survey.
The researcher has developed highly structured questionnaires for the respondents and used face-to-face survey data collection to make sure the research objectives was met. Since the Orang Asli come from a variety of educational backgrounds, a face-to-face survey enables the researcher to build rapport with potential respondents and, as a result, gain their cooperation while they complete the survey. According to Zikmund et al. (2010) face-to-face surveys encourage high participation from respondents.
Population and sample
From the statistics by the JAKOA, Pahang and Perak have the largest population of the Orang Asli with 78,425 and 60,565 respectively. Thus, these two states have been selected for this pilot study. Using a purposive sampling technique, a total of 40 entrepreneurs from both states has been selected based on the two main criteria’s namely (1) must be from the Orang Asli ethnics, and (2) owned or involved in any entrepreneurial activities regardless the age. The reason behind this criteria’s is because according to the JAKOA officer, many entrepreneurs among the Orang Asli are still not registered with any related agency because it is more convenient for them.
Because the respondents are chosen based on predetermined criteria sets and by the researcher, judgement (purposive) sampling is used. The researcher has a small pool of sources for information because the Orang Asli in Pahang and Perak live in dispersed settlements. According to Bougie and Sekaran (2019), judgement sampling entails choosing the subjects who will be in the best position to provide the necessary information and who also possess the necessary characteristics (Zikmund et al., 2010).
Instrument development process
In this study, item in the questionnaire measured on a five until seven-point interval scale. In measuring the construct as well as to make sure the data is analysed accurately; the items was adopted from several studies in related fields and in accordance with the purpose and objective of the study. The questionnaire consists of three sections. In Section 1, the respondents will be asked about their demographic profiles, Section 2 represents questions regarding all the constructs. In Section 3 represents questions on the entrepreneurial behaviour.
Data collection
In order to identify the right respondents according to the criteria’s that has been sets by the researchers, firstly, the researchers obtained each Orang Asli entrepreneurs most recent address from JAKOA. Next, during the data collection process, the researcher had asked and the Village Chief or Tok Batin for help in order to get the correct respondents that has been identified who involved in any entrepreneurship activities either registered with CCM or JAKOA or never registered with any agency regardless their age which is not in JAKOA and CCM data and records.
To reduce and control for common method variance in this study, the researchers has removed common scale properties by switching the response format by using a five until seven-point interval scale.
Data analysis
In an attempt to investigate an entrepreneurial behaviour among the Orang Asli, this study underpinned the TPB to predict entrepreneurial behaviour among the Orang Asli entrepreneurs and Structural Equation Modelling (SEM) was used to analyse the data. SEM is an appropriate technique for analysing survey data. According to Hair et al., (2018), SEM is a second-generation technique that refers to a multivariate technique that can analyses and examine the relationship between an observed (manifest) variable and an unobserved (latent) variable at the same time. The PLS-SEM was deemed an appropriate tool for evaluating the proposed hypotheses.
Results
Demographic profile of the respondents
The demographic features of the respondents including gender, age, ethnicity, subgroups or tribes, business ownership, categories of entrepreneur, nature of business, years of business establishment and academic qualification are assess using cross-tabulation analysis. The respondents are 50% male and female. For female respondents, 7.50% are within the age group of 19-25, while 10% are within the age group of 26-35, age 36-45 represented with 5%, age 46-55 represented with 2.5% and above 55 represented with 17.50%. For male respondents, 5% are within the age group of 19-25 followed by 2.5% are within the age group of 19-35, 12.5% are within the age group of 26-35, 2.5% are within the age group of 26-36, 7.5% from age group of 36-45 followed by 2.5% from age group of 36-55, 7.5% from age group of 46-55 and above 55 represented by 10% for male respondents. From the demographic profile, 70% are from Proto-Malays and 30% are from Senoi ethnicity who involved in agriculture (25%), agro-based industry (10%), retail 12.5% and services by 52.5%.
Assessment of measurement model
The measurement model is evaluated using two measures of validity: convergent and discriminant validity, and the results for both measures of validity are shown below. Table 1 shows that values of the Average Variance Extracted (AVE) ranged from 0.612 to 0.679, which were above the recommended threshold of 0.50 (Hair et al., 2017).
The researcher examined discriminant validity by assessing the Heterotrait-Monotrait Ratio Statistics (HTMT) in PLS-SEM. The HTMT criterion calculates the average correlation between constructs. In other words, it will calculate to uniqueness between the constructs. Table 2 shows the discriminant validity results. A predefined threshold for discriminant validity using HTMT is the value not more than 0.90 (Henseler et al., 2015). If the value is greater than 0.90, Henseler et al., (2015) suggested to do run a bootstrapping. From the Table 2, the PBC shows the value of 0.939, thus, the researcher will calculate a bootstrapping for further analysis.
Assessment of measurement model
To answer the research objective, a series of regression analyses were formed. Table 3 shows the summary of hypotheses results for this study. First, the effect of attitude on entrepreneurial behavior was tested follow by subjective norms, perceived behavioral control and actual behavioral control. Attitude perceived behavioral control and actual behavioral control was found to have no significant effect on entrepreneurial behavior at p<0.05 level where attitude with 0.313, PBC with 0.053 and ABC with 0.234. Subjective norms have positive effect on entrepreneurial behavior with p<0.002. A p-value less than 0.05 (typically ≤ 0.05) is statistically significant.
Discussion
The results indicate that only subjective norms associated with entrepreneurial behavior among the Orang Asli in Perak and Pahang. In below subsection, the results are explored and discussed with recent literature from scholar.
Attitude on entrepreneurial behavior
The results show that the H1 has been rejected. This is because the results stated that attitude has no significant effect on entrepreneurial behavior. For attitude construct that represented with ATT1, ATT2, ATT3, ATT4, ATT5, ATT6, ATT7 and ATT8, the Orang Asli as respondent will answer the survey based on their feelings, emotions, beliefs, thoughts as well as their mental state whether they are acting consciously or unconsciously in relation to their behaviour as an entrepreneur. In accordance with the results, the Orang Asli do not believe that their attitude is associated with the entrepreneurial behaviour. Even though attitude is one of the main constructs that linked with entrepreneurial behaviour, the results shows that attitude is separated with cognitive and emotional components that lead to the formation or intention to perform a task. This study has been supported by Ravi & Nor Aishah (2016) who postulated that to form an attitude of entrepreneurial behavioural, an individual will be influence by their thoughts and feelings.
Subjective norms on entrepreneurial behaviour
The researcher measured subjective norms in this study by asking the Orang Asli about their significant others' perspectives on their entrepreneurial behaviour. These included family members, friends, and tribe members. The items represented with SN1, SN2, SN3, SN4 and SN5. From the results, the Orang Asli believed that their family, friends and others that important to them influenced their behaviour to become an entrepreneur. Subjective norms or normative references, such as family, friends, and co-workers, have a direct influence on entrepreneurial intention (Miranda, Chamorro-Mera, & Rubio, 2017; Miranda, Chamorro-Mera, Rubio, et al., 2017). Subjective norms are important in entrepreneurial intention since it is a difficult decision for an individual to become an entrepreneur, thus that individual will likely seek advice and support from those around them (Kim et al., 2019). Besides, the degree to which a person is motivated to follow the relevant referent is amplified by the strength of each normative belief (Maes et al., 2014). Thus, results from bootstrapping support RO2 and H2 is accepted.
Perceived behavioral control on entrepreneurial behavior
In order to measure PBC constructs, the items from PBC1, PBC2, PBC3, PBC4, PBC5, PBC6, PBC7 and PBC8 will ask respondents about their perception regarding the simplicity or complexity of starting or operating a business. Results shows that the Orang Asli do not believe that their perception on own ability to perform can contribute towards entrepreneurial behavior. This is because, perceived behavioral control associated with self-efficacy. Meanwhile, perceived behavioral control refers to a person's intention can only result in actual behavior if they believe they are capable of carrying out the behavior in question (Maes et al., 2014). In this study, hypotheses 3 is rejected because (Xiao & Wong, 2020) claimed that PCB is a combination of one’s sense of control over a certain behavior and self-efficacy. Thus, H3 is rejected and answer RO3.
Actual behavioral control on entrepreneurial behavior
The researcher measured ABC by asking the Orang Asli’s level of existing skills to operate the business, access to resources and also any additional skills needed to become successful entrepreneur. These items represented with ABC1, ABC2, ABC3, ABC4 and ABC5. However, from the results, it shows that the Orang Asli entrepreneur feel that their actual behavioral do not influence their behavior to become successful entrepreneurs. A person’s actual behavior is directly determined by their behavioral intention where it is influenced by their attitudes, subjective norms and perceived behavioral control towards performing the behaviors (Wang et al., 2021). However, the results rejected H4 as well as RO4 because scholar claimed that an external factor such as environment, social desirability bias and wishful thinking may not be under the controls of individuals where people are more inclined to engage in certain behaviors if they have more control over the opportunity and resources to do so (So et al., 2021). Thus, H4 is rejected.
Conclusion
Underpinned with the TPB, this study investigates the effect all constructs including attitude, subjective norms, perceived behavioral control and actual behavior control in determining entrepreneurial behavior among the Orang Asli specifically in Pahang and Perak. Findings shows that attitude, perceived behavioral control actual behavioral control have not significantly affect on entrepreneurial behavior while subjective norms have significantly affected on entrepreneurial behavior among the Orang Asli entrepreneurs.
This study makes a contribution by providing more insights on the mechanism through underpinning theory in producing more successful entrepreneur particularly among the Orang Asli in Malaysia. Findings from this study has direct implications for potential entrepreneurs, policy makers and entrepreneurship educators to nurture and foster entrepreneurial behavior not only among the Orang Asli in Malaysia but can be foster to all races from every ethnicity in Malaysia to encourage them to get involved in the entrepreneurial activities.
This study has certain limitations. First, this study used basic model of the TPB within the Orang Asli context. Future studies can consider the mediator and moderator variables such as self-identification, cultural or psychological elements to examine the behavioral differences of respondents in different cultural backgrounds. Second, future studies can identify the behavioral differences of respondents using demographic information such as ethnicity and thirdly, since this is only pilot-study, future research can consider to conduct the study to all Orang Asli in Malaysia.
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Publication Date
18 August 2023
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eBook ISBN
978-1-80296-963-4
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European Publisher
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Multi-disciplinary, Accounting, Finance, Economics, Business Management, Marketing, Entrepreneurship, Social Studies
Cite this article as:
Shuhada, N. E., Mokhtar, M., Nawanir, G., & Shamsuddin, A. (2023). Entrepreneurship Behaviour Among the Orang Asli in Pahang and Perak. In A. H. Jaaffar, S. Buniamin, N. R. A. Rahman, N. S. Othman, N. Mohammad, S. Kasavan, N. E. A. B. Mohamad, Z. M. Saad, F. A. Ghani, & N. I. N. Redzuan (Eds.), Accelerating Transformation towards Sustainable and Resilient Business: Lessons Learned from the COVID-19 Crisis, vol 1. European Proceedings of Finance and Economics (pp. 658-670). European Publisher. https://doi.org/10.15405/epfe.23081.59